U.S. Rep. John Larson,( D-Connecticut) is pushing to make the Social Security COVID Correction and Equality Act law to protect Americans who were born in 1960 who will be turning 60 this year.
Larson recently penned a letter on his website about the need to pass the legislation as a way of protecting people born in 1960 who might take a hit, as much as $2,000 a year according to Larson, on their Social Security benefit due to the economic fallout from COVID-19.
The reason the COVID-19 pandemic could specifically harm a person’s Social Security benefit if they turn 60 in 2020 is because Social Security takes a snapshot of career earnings when a person turns 60. At that time the earnings are calculated to determine a person’s benefits. Because COVID-19 has caused millions of Americans to lose their job, this year of earnings will reduce benefit amounts for many people who turn 60 this year. Larson responded to this discovery to try and protect people turning 60 this year with this legislation.
Below is a portion of the letter issued on Larson’s website where he details specific aspects of the Social Security COVID Correction and Equality Act.
- Increases benefits by 2 percent on average;
- Increases the minimum benefit to 125 percent of the poverty level, lifting more life-long workers out of poverty;
- Reduces the taxation of benefits for lower-middle income beneficiaries who are struggling to provide for themselves and their families,
- Helps grandparents provide for dependent grandchildren;
- Assists dependent students ages 18-22 so that they can receive the education they need to get a good job;
- Expands benefits for dependent widows/widowers so they can make ends meet;
- And provides more help to the poorest of all, by expanding eligibility for Supplemental Security Income.
During a recent congressional hearing that I chaired, I emphasized how urgent it is for the House to act and address this issue now.
People of color, specifically women of color, disproportionately rely on Social Security for their retirement income as compared to white Americans, and many retire into poverty despite the Social Security benefits they earned with every paycheck. Social Security lifts 9 million women out of poverty, including 90 percent of senior women. Without Social Security, 43 percent of older women would be living in poverty. Even with Social Security five million beneficiaries are left behind and live below the poverty line.
No one knows when this pandemic will end. Once we start to recover, the economic and health effects will be felt for years to come. Many Americans will be relying on Social Security for not only their retirement, but for disability benefits and survivors’ benefits for their families.
Now is not the time to be complacent, we must prevent this harmful benefit cut. The Republicans in Congress should join with House Democrats and correct this anomaly with the Social Security COVID Correction and Equity Act.
